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We continue from my previous posting with some example of my trade.

Firstly, I would like to stated here that my system was primarily based  on the concepts of two trading systems  that were developed by members of Forex Factory forum.

1. FxPrime by Canadian Dude: Only two indicators in his system I adopted: the cross of 6 period ema, 12 period  ema,  and 50 period  sma, and FxPrime filter. 

2. Imran Sait’s scalping using lag indicators: From his system, I discovered the usage of lag indicators (the blue(fast) lag and the red(slow) lag). Other indicators that he ashown in his method are mostly indicators that I have been using them before, such as Bollinger Band (BB), 60 and 200 ema  and  pivot points. 

I added few indicators such as RSI, Fibonacci retracement, the S/R of the daily open and of yesterday high and low.  To enhance my entry and exit I utilized a proprietarily indicators; Stealth Buy & Sell and Stealth LCD.

 Where do I start?

 

1. I trade only one currency cross, USDJPY. (refer to my previous posting)
2. The session time I actively trade is during the Asian session and American session. Therefore, my trading time will be at 23:00 GMT or 7 am Malaysian time ( opening session for Tokyo) until about 3 hours later, and the second session will be one hour before US session i.e. 12:00 GMT  or  8 pm Malaysian time until  16 GMT or midnight Malaysian time (London session closing).

 

The trade: 

My trade is scalping and I trade on 1 min time frame (TF) i.e I am using 1 min chart. 

My target is to get a 30 pips profit per session or 60 pips for the two session period. 

My  stop loss will 10 pips. 

My profit target for counter trend (CT) trade will be a 10 pips minimum and for trend trading my target is to achieve a minimum of  20 pips per entry.

The initial step. 

1. I scan the 15 min or 30 min to 1 hour TF chart for S/R mainly based on pivots, Fibonacci retracement and trendline, BB, RSI and candlesticks pattern especially loking for doji, star, harami and engulfing on 15 min and 30 min TF.
2. Let us see the chart 1 below. (Note: I am using Liteforex chart where the market start at 22:00 GMT or  -2 GMT. In the chart if  the time is 19:00 it is equivalent to 17:00 GMT)                                    

                                             CHART 1
The cross was on the uptrend with the cross tagging the upper BB from 19:59  to 20:14 GMT. The cross is fast approaching two resistance levels, the pivot point (magenta) and the daily open (white). So I am looking for short entry and with the uptrend is still intact based on the prices is still above the 60 and 200 ema’s. This will be a counter trend trade. 

                                             CHART  2

After the 20:14, RSI and the lag which is at overbought position is moving downward, but no entry is made since the Stealth Buy & Sell, Stealth LCD and Fxprime filter is still green in color. At 20:25, the 6 ema cross 12 ema from above and the stealth Buy & Sell, and LCD showed red color with the red lag inched toward a cross below 85. I made a short  entry on the next candle at 20:26 with a price of 89.94. Therefore my stop loss will be at 90.04. Based on initial entry as CT the target price is 89.84.

By 20:29 the two price is below 20 sma and RSI is below 50 and the two ema’s is going to move below the 50 sma. Therefore, I am now moved my profit target to be at least 20 pips. 

From chart 3, we could see the support levels, at 89.75 and 89.65. I exit at 89.70 after the three bearish candles and a possibility formation of a morning star.

                                             CHART 3

The above trade was done at about 18:00 GMT which is outside my trade session. In next posting, I will showed the trade during my proposed trade session